The inception of the internet brought forth a revolution in the world of gaming and gambling. At the onset of the millennium, online casinos providing games of luck and skill, such as poker and blackjack, started to flourish. As one may surmise, the advent of Bitcoin in 2008 presented an opportunity for a new mode of transaction in the online gambling industry. Over the last decade, Bitcoin gambling has undergone significant evolution – from an uncertain legal landscape to wider acceptance and unbelievable growth. This piece provides beginners with a glimpse into the fascinating world of Bitcoin gambling, its origins, evolution, and current trends.
In the year 2008, an anonym named Satoshi Nakamoto presented the world with a novel form of currency named Bitcoin. Grounded in blockchain technology, Bitcoin promised transactional transparency, reduced dependency on central regulatory financial entities, and heightened security. Even though Bitcoin as a currency intrigued several industries, the gambling industry was arguably one of its earliest adopters.
Bitcoin gambling set out as a niche market with limited following. However, its potential to mould and better the traditional online gambling experience was evident early on. Bitcoin’s distinctive features – anonymity, speed, and low transaction costs – addressed many pain points of the traditional online gambling industry.
Bitcoin’s pseudo-anonymous nature offered unparalleled privacy protection in comparison with traditional fiat-based online gambling. Period waiting previously associated with withdrawals and deposits was eliminated due to transactional speed provided by Bitcoin. Reduced transactional costs fortified profit margins for both the player and the casino, with Bitcoin’s negligible transactional fees in contrast to traditional banking transaction costs.
In 2012, Bitcoin gambling took a significant leap forward with the establishment of SatoshiDICE. SatoshiDICE, a straightforward yet innovative blockchain-based betting game, gave the player a choice to place a bet on whether a rolled dice would throw a number greater or lesser than a chosen number. As per reports, SatoshiDICE was responsible for more than half of daily Bitcoin transactions during the first half of 2013, confirming the growing interest and prevalence of Bitcoin in online gambling.
However, Bitcoin soon attracted lawmakers’ attention due to its escalating popularity, and legal impediments threatened to derail the rising trajectory of Bitcoin gambling. The ambiguity and inconsistency in Bitcoin’s legal status across countries led to widespread uncertainty. While some jurisdictions like Japan, Germany, and the USA legally acknowledged Bitcoin, others, such as Russia and Vietnam, prohibited its use, resulting in inconsistent regulations affecting its use in online gambling.
Despite these hurdles, Bitcoin casinos continued to expand. Integration of new game titles and enhancements in safety measures fostered trust and loyalty amongst users. Platforms like BitCasino and mBit Casino emerged, offering a wide variety of games similar to traditional online casinos.
In 2016, Bitcoin gambling received a huge boost as Steam, a popular online gaming platform, started accepting bitcoin as a payment option for game purchases. Although Steam discontinued support for Bitcoin in 2017, primarily due to high volatility, the move was successful in boosting awareness and acceptance of Bitcoin in the gaming and gambling industry.
The next major leap in the evolution of Bitcoin gambling was the advent of ‘Provably Fair’ games. The ‘Provably Fair’ technology, enabled by the transparency of blockchain, allows players to verify the fairness of every game round independently. Today, most Bitcoin casinos adhere to this concept, further fortifying trust and credibility in Bitcoin gambling.
Bitcoin gambling, as we know it today, has come a long way. The synergy of blockchain technology with online gambling has paved the way for an exhilarating and truly fair gambling experience. Bitcoin casinos have diversified their game offerings with not just classic casino games but also exclusive games tailored for Bitcoin gambling. The advanced security features, low-cost speedy transactions, and inclusive nature of Bitcoin have further boosted its popularity as a preferred mode of currency for online gambling.
Despite unprecedented growth, the evolution of Bitcoin gambling is far from over. With improvements in bitcoin technology, the emergence of other cryptocurrencies, and regulatory developments globally, it’s indeed intriguing to watch what the future holds in store for Bitcoin gambling.
Nevertheless, it’s safe to conclude that Bitcoin gambling has revolutionized the online gambling industry in a short span, and there’s no going back.
Sources:
1. Bitcoin: A Peer-to-Peer Electronic Cash System – Satoshi Nakamoto, 2008
2. SatoshiDICE Statistics – https://bitcointalk.org/index.php?topic=101902.0
3. Legality of Bitcoin across countries – https://www.loc.gov/law/help/bitcoin-survey/
4. BitCasino – https://www.bitcasino.io/
5. mBit Casino – https://www.mbitcasino.com/
6. Steam Announces It Is ‘No Longer Supporting Bitcoin’ – https://motherboard.vice.com/en_us/article/43q3gm/steam-announces-it-is-no-longer-supporting-bitcoin
7. Provably Fair Gambling – https://dicesites.com/provably-fair.
